$50bn secured for refinery, free zone development in Ondo, says Backbone Infrastructure

Backbone Infrastructure Nigeria Limited (BINL) says it has secured over $50 billion for the development of a “500,000-barrels-per-day refinery and a 1,471-hectare sunshine free trade zone” in Ondo state.

In a statement on Monday, the firm said the funding follows the successful execution of the memorandum of understanding (MoU) between BINL and the state government in July, through the Ondo State Investment Promotion Agency (ONDIPA).

Backbone Infrastructure said it secured the project funding, “exceeding $50 billion for both projects”, through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada.

Ken Nnamani, chairman of Backbone Infrastructure, according to the statement, is leading a team on a courtesy visit to Lucky Aiyedatiwa, governor of Ondo, and interactions with state officials.

The company said the team also includes other board members and executive management, led by Henry Owonka, who arrived in Nigeria last Sunday.

The meeting, according to the firm, will explore the roadmap towards the commencement of the projects, including presentations with ONDIPA, visits to the project sites and engagement with the host communities led by Obateru Akinrutan, the Olugbo of Ugbo Kingdom.

Speaking on the refinery financiers, Wale Adekola, BINL’s vice-president for corporate services, said NEFEX Petroline is involved in engineering and construction services for ports, terminals and logistics facilities, including pipelines and facilities in the oil and gas industry.

“With operations across the Middle East, Europe, North America, and beyond, NEFEX Petroline combines the advantages of a global network with deep local understanding,” Adekola said.

“The firm maintains partnerships with leading global financial institutions to secure multi-currency credit lines and liquidity support for large-scale operations.

“Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development.”

Adekola lauded Aiyedatiwa for creating a welcoming environment for investors, noting the project has garnered global approval from the state’s people.

The BINL said the refinery will supply petroleum products locally and internationally, while its corporate social responsibility (CSR) focuses on education, local employment and infrastructure development in surrounding communities.

The organisation added that the refinery project includes the construction of roads, storage tanks, loading bays, terminals, and handling equipment.